IRS Issues Rules for Long-Term Part-Time Worker Retirement Plans

The IRS on Friday issues proposed rules to provide definitions under part of the US tax code that deal with retirement plans that include cash or deferred arrangements for long-term, part-time employees.

The proposed rules (RIN 1545-BQ70) would amend regulations under Sec. 401(k) following the passage of the SECURE and SECURE 2.0 legislation, which was passed in 2019 and 2022 respectively. Each of these pieces of legislation included specific work-hour thresholds for long-term, part-time employees to attain to be eligible for retirement plans.